Budget 2018 | Long Term Capital Gain Tax at 10% on Shares and Mutual Funds | LTCG Tax at 10%

Budget 2018: Govt introduces Long Term Capital Gain Tax ( LTCG) tax of 10% on capital gains over Rs1 lakh for investments in Shares and Equity Mutual Funds. Finance minister Arun Jaitley in his Budget 2018 speech has proposed to re-introduce long-term capital gains tax on gains arising from the transfer of listed equity shares exceeding Rs 1 Lakh at 10 percent, without allowing any indexation benefit. However, all gains up to 31st January, 2018 will be grandfathered. The short-term capital gains tax at 15 percent will continue for transfer of shares within 12 months. Currently, long-term capital gains (LTCG) from the sale of equity shares and equity-oriented mutual funds on which securities transaction tax (STT) has been charged on sell transactions are completely exempt from tax. This means that any gains from sale of equity shares or mutual funds held for more than a year are not subject to any kind of tax whatsoever.